The global insurance fraud investigation outsourcing market was valued at USD 525 Million in 2019 and is projected to reach USD 2,154 Million by 2027, expanding at a CAGR of 19.6% during the forecast period. The market is driven by factors such as greater expertise, reduction in risk and cost for insurance companies, increasing adoption of advanced analytics techniques, and stringent regulatory compliances. Conversely, difficulties in detection and prosecution of insurance fraud and enormous costs involved in fighting fraud are likely to restrain the market. significance of social media and increasing adoption of technology are creating opportunities in the market.
The outsourcing companies have collective experience and expertise of an outsourcer's investigative workforce. These experts are aware about the insurance industry, claiming process, several fraud schemes, and technology and processes required to investigate, prevent, and detect fraud. Additionally, they are aware about the prosecutorial process and requirement for a successful prosecution. One of the key advantages offered by the fraud investigation outsourcing expertise is the best practice implementation for the overall investigation process. Outsourcing experts implement and recommend procedures covering all phases of fraud investigation from resolution to claim referral, which lead to more impressive outcomes than with a less practiced in-house Special Investigative Unit (SIU).
Training is a major expenditure for insurers to handle insurance fraud investigation in house. Insurance fraud investigation outsourcing reduces expenses for an insurance company and eases an insurer's possibility for bad-faith lawsuits. If an in-house investigator goes out of line to investigate a claim, the insurer is responsible for the legal penalties. However, if a service provider steps out of line to investigate a claim, the insurer points to its contract and make the case that the vendor broke the contractual duty, potentially defending itself from a bad-faith claim.
Advanced analytics techniques are a set of analytical techniques that analyze enterprises’ database and systems to identify the vulnerabilities of frauds. Advanced analytics play an important role in incorporating internal data with third-party data to increase fraud detection abilities. These solutions analyze and monitor data from various data sources, offer a control mechanism to avoid fraudulent practices in real-time, and detect suspicious & unusual and anomalies behavior across all channels. The adoption of analytics has reinforced fraud detection.
Insurers work to increase profits and cut costs by offering targeted insurance resolutions to their customers, insurers constantly modernize their compliance and regulatory functions to meet their ethical and legal ethical obligations cost-effectively and sustainably. The insurance fraud investigation market is expected to grow during the forecast period owing to restricted entry of new market players due to stringent regulatory compliances, which decreases the competition in the market.
By Types Segment
In terms of types, the insurance fraud investigation market is segmented into healthcare fraud investigation, auto insurance fraud investigation, property insurance fraud investigation, workers compensation fraud investigation, and others. The healthcare segment is future divided into policyholder fraud/claims fraud, intermediatory fraud, and internal fraud. The auto insurance fraud investigation segment held 31.3% share of the market in 2020 owing to the increasing filing of fake damages. The healthcare fraud investigation segment is anticipated to expand at a CAGR of 19.8% during the forecast period.
By Applications Segment
On the basis applications, the market is segmented into large insurance companies, medium and small insurance companies, and third-party administrators (TPA’s). The large insurance companies segment accounted for a market share of 50.8% in 2020, while the medium and small insurance companies segment is anticipated to expand at a CAGR of 19.9% during the forecast period.
On the basis of regions, the market is categorized as North America, Europe, Asia Pacific, Latin America, and Middle East & Africa (MEA). North America is a promising region of the market. The region constituted 38% share of the market in 2020. The demand for insurance fraud investigation outsourcing is expected to rise due to increasing adoption of advanced analytics techniques. The market in Asia Pacific is projected to expand at a CAGR of 20% during the forecast period due to increasing awareness regarding rising instance identity thefts, payment frauds, and claims fraud in the region.
Some frequently asked quetions about this report!
Additional company profiles can be provided on request.
Yes, the report covers various types of insurance fraud investigation outsourcing such as healthcare fraud investigation, auto insurance fraud investigation, property insurance fraud investigation, workers compensation fraud investigation, and others.
According to this Growth Market Reports, the market from insurance fraud investigation outsourcing market is likely to register a CAGR of 19.6% during period 2020-2027, with an anticipated valuation of USD 2,154.0 million by the end of the 2027.
In addition to market size (in USD Million) and Company Market Share (in % for base year 2019), other data such Macro-economic factors, COVID-19 Impact on the insurance fraud investigation outsourcing market is available in final report.
Factors such as competitive strength and market positioning are key areas considered while selecting top companies to be profiled.
The insurance fraud investigation outsourcing market is anticipated to grow significantly during forecast period due greater expertise offered through these outsourcing services, reduction in risk and cost for insurance companies, increasing adoption of advanced analytics techniques, and stringent regulatory compliances.
The demand for insurance fraud investigation from large insurance companies, medium and small insurance companies, and third-party administrators (TPA’s) is driving the market growth.
The market is expected to witness sluggish growth with slow increase in terms of demand during 2019-2020 owing to the negative impact of COVID-19 pandemic on the insurance fraud investigation outsourcing market.
The base year considered for the insurance fraud investigation outsourcing market report is 2019. The complete analysis period is 2017 to 2027, wherein, 2017 & 2018 are the historic years, and the forecast is provided from 2020 to 2027.
Major Manufactures include Brumell Group / Brumell Investigations Inc., Corporate Investigative Services, CoventBridge, crigroup.com., Delta Investigative Services, ICORP Investigations, Integrated Security Services, and others.